If you are having problems playing or hosting a game or if you get too high latency then follow this guide to exclude Steam from Mullvad VPN. This will allow Steam to use your unprotected Internet connection, while the rest of your apps are using your Mullvad connection. This requires the split tunneling function that is available in the Mullvad app for Windows, Linux and Android. This guide uses Windows.
Enabling split tunneling for Steam
- Open the Mullvad VPN app (make sure it's minimum version 2021.4)
- Click on the settings icon that looks like a gear in the top right corner.
- Click on Advanced.
- Scroll down and click on Split tunneling.
- Scroll down to Steam and click on the plus icon on the right side of it. If it does not show up in the list of applications then click on Find another app. Then find the path to steam.exe which normally is in C:\Program Files (x86)\Steam\. When selected it should show up under "Excluded apps".
- Now any game started by Steam will go outside the VPN using your normal Internet provider.